Diversifying income streams - different revenue options for social enterprises

This is by no means a conclusive list of different ways to generate revenue in your social enterprise. And the decisions you make for your social enterprise will depend on a range of factors including your purpose; your beneficiaries; what you sell; your customers; and the revenue you want and need to make.

My first list of income streams will be familiar to those leaders who have worked in the charity or not-for-profit sector before. They are all valid income streams however I would recommend as a social enterprise you’re not reliant on any one (or just these types of revenue) because by definition of being a social enterprise (or social impact business) you need to have a trading revenue, and this is usually assumed to be 75% of your income.

Revenue streams which are not trading income:

• Grant Funding

• Donations & Campaigns

• Public & private Fundraising

• Social Investment

• Sponsorship

• Crowdfunding campaigns

• Membership / Subscriptions (including friends/ supporters of)

Revenue streams that are trading income:

• Selling services or products

  • To individuals

  • Or organisations / businesses

• Public & private sector procurement

• Affiliate sales (other people selling your services on your behalf for a small fee) - this particular approach can help you reach wider audiences of customers

• Advertising (aka you actually charging for advertising space)

• Auctions

• Property development / management (or selling assets)

• Being brokers or receiving commission for selling other people’s products / services

• Franchise / License Fees and Royalties

• Leasing

• Pay to use / Rental (e.g community owned car/bus; office space/hot-desking/ hotel rooms)

• Private Label - Enable customers to rebrand completely and provide customer branded support

• Setting Standards (and licensing these) - Platforms that are open to the development of complementary services while preserving the proprietary advantage to ensure lock-in e.g. IOS, Andriod, Blu-Ray

Here are some of the most common ways I see social enterprises and social impact business selling services:

• Packaging up your knowledge, skills, expertise (training, consultancy, advice, support, delivery….)

• Entry to your venue / spaces

• Events

• Reaching out to new audiences who will pay for what you already do – either because it meets their needs/desires or gets them a result / outcome they want

• Subscription models

For women who are ready to make more sales in an aligned way to who they are

If you enjoyed this blog you may also enjoy: